Pakistan’s virtual asset regulator introduces 10 licence categories and sets September 5 deadline for existing providers to apply for NOCs.
ISLAMABAD: The Pakistan Virtual Assets Regulatory Authority (PVARA) has notified licensing regulations and opened its licensing portal, completing the regulatory framework for licensing and supervising virtual asset service providers (VASPs) in Pakistan.
Issued under the Virtual Assets Act, 2026, the regulations establish 10 licence categories covering exchanges, custody services, broker-dealer services, advisory, lending and borrowing, derivatives, asset management, transfer and settlement, issuance and mining-related services.
The framework sets out detailed requirements covering business conduct, prudential standards, technology controls and anti-money laundering and combating the financing of terrorism (AML/CFT) compliance.
Existing VASPs face September 5 deadline
Existing virtual asset service providers must submit applications for a No-Objection Certificate (NOC) by September 5, 2026, under Section 70 of the Act.
Those failing to submit applications by the deadline will be required to cease operations. PVARA said continuing to operate without submitting an application after the deadline would constitute an offence.
PVARA Chairman and Minister of State Bilal Bin Saqib said the new framework would provide legal protection for customer assets.
Licensed providers will be required to segregate customer holdings from their own assets and will be prohibited from lending or pledging customer assets without written consent.
Two-stage licensing process
The licensing process will operate in two stages.
Applicants seeking incorporation in Pakistan may first enter a regulatory sandbox or obtain an NOC under Section 19 before applying for a full licence.
The framework also gives licensed VASPs access to Pakistan’s formal banking system.
State Bank of Pakistan Circular No. 10 of 2026, issued on April 14, permits regulated entities to open accounts for PVARA-licensed providers, including segregated Client Money Accounts.
Bilal said the regulations followed a public consultation conducted from June 11 to July 2, 2026, which also included a stakeholder webinar.
PVARA completes regulatory framework
PVARA was established as a permanent statutory body in March 2026, while banking access was secured in April.
The authority said the licensing framework had subsequently been completed within six months, providing a formal regulatory structure for virtual asset service providers operating in Pakistan.